By Emmanuel Kwada
In a stark revelation that underscores Africa’s deepening economic woes, the World Bank has reported that nearly 100 million Nigerians are grappling with severe job challenges, marking the highest figure in Sub-Saharan Africa.
The findings, detailed in the latest edition of Africa’s Pulse – the bank’s biannual economic update for the region – paint a dire picture of a youth bulge colliding with stagnant job creation, threatening to derail the continent’s growth trajectory.
The report highlights Nigeria’s precarious position amid a broader regional crisis, where Sub-Saharan Africa’s working-age population is projected to swell by over 600 million in the next 25 years. Yet, only about 24% of new entrants into the labor market secure wage-paying jobs, leaving millions trapped in informal, low-productivity roles.
For Nigeria, home to Africa’s largest population of over 220 million, this translates to an estimated 95-100 million individuals – roughly 45-50% of the populace – facing underemployment, informal work, or outright joblessness. This dwarfs figures from neighboring countries like Ethiopia or Kenya, positioning Nigeria as the epicenter of the sub-region’s employment emergency.
“Over the next quarter century, Sub-Saharan Africa’s working-age population will grow by more than 600 million. The challenge will be matching this growing population with better jobs,” said Andrew Dabalen, the World Bank’s Chief Economist for the Africa Region, in commentary accompanying the report.
He emphasized that without urgent reforms, the region risks a “lost generation” of unproductive labor, exacerbating poverty rates already hovering at 56% in Nigeria – affecting 129 million people nationwide.
The crisis is compounded by structural barriers. Nigeria’s labor market is dominated by informal sectors, where over 80% of workers toil in agriculture, petty trade, or micro-enterprises with minimal hours and earnings. Wage jobs, which offer stability and benefits, constitute just 15% of employment opportunities.
The report notes that even educated youth – with two-thirds of Nigerians under 25 – struggle, as skill mismatches and limited access to finance stifle transitions to formal roles. External factors, including a debt burden that has doubled to 2% of GDP over the past decade and a tripling of countries at high risk of debt distress (from eight in 2014 to 23 in 2025), further strain fiscal space for job programs.
Sub-Saharan Africa as a whole faces a daunting task: creating up to 15 million new jobs annually by 2030 to absorb its booming youth demographic, half of whom will enter the global labor force from this region alone.
Fragile and low-income economies, including Nigeria, bear the brunt, with underemployment rife among the poor. The International Monetary Fund echoed these concerns in a recent blog, urging policies to boost informal sector productivity through skills training, finance access, and incentives for formalization – particularly for women facing additional barriers.
Economists warn that failure to act could entrench inequality and fuel social unrest. “Nigeria’s human capital index ranks seventh-lowest globally, with future workers only 36% as productive as they could be with better education and health access,” the World Bank overview states.
The report calls for a “new growth model” centered on enterprises, diversification beyond oil, and investments in high-potential sectors like tourism, where each job could spawn 1.5 more in related industries.
In response, Nigerian policymakers are under mounting pressure. President Bola Tinubu’s administration, which has pursued currency liberalization and fuel subsidy cuts since 2023, has touted reforms to attract investment. Initiatives like the DeepTech_Ready Upskilling Programme aim to equip 20,000 youth with digital and AI skills, while partnerships – such as Zimbabwe’s with the UAE for 1.5 million trainees – offer blueprints for scale.
However, critics argue that without bolder measures, like improving public transport to boost female workforce participation or easing business regulations, progress will remain elusive.
The World Bank urges accelerated, jobs-friendly growth: enhancing infrastructure, fostering private-sector innovation, and prioritizing human capital. “With the right reforms and investments, Sub-Saharan Africa can unlock its vast employment potential and chart a path toward inclusive and sustainable growth,” the report concludes.
